Hi Dani86
I understand the situation that you are in at the moment. I really appreciate how difficult it is setting off in an industry such as this. I am in a similar situation to yourself. I have also worked for no salary over the past year in an organisation gaining "on the tools" experience. I must say I have really enjoyed my time learning this way. It was a fantastic opportunity and I have enjoyed every minute of it. (I will choose this opportunity to say thanks to the guys that have put so much effort in, as I know they are enthusiastic readers of this website!)
I studied engineering when I was at school/college and I thought it was a great way of learning the basics. I believe it's a good foundation to start learning for a career in engineering. I then studied for the Part 66 modules and I am currently working towards applying for an A Licence with ambitions to be a full B2 sometime in the future. I will say now that I don't believe I am a hotshot engineer either. I want to work my way up and prove my worth too. I also agree that experience is one of the most important criteria for this job. But I do believe that a combination of the engineering foundation via academia as well as "on the tools" experience goes hand in hand.
Due to the current economic downturn, we are all quite aware of the current job market. It is such a shame that the downturn has affected the aviation industry quite so seriously. As I am regularly told, now is the worst time to have chosen to start a career in what is already a difficult industry to get into! But I don't think anyone predicted this would of happened!

If I did, I wouldn't of started when I did!
Which leaves you with the option of trying to join an apprenticeship. I have also applied for some with the same response of being too over qualified! It is difficult to please all employers.
If I was to pass on any advice that was said to me, it would be to keep trying. Positivity and enthusiasm is everything. I work every minute I can gaining experience as I am particularly passionate about this job and I am determined to better myself. You learn something new everyday. As famously said in my workplace, "everyone deserves a break". And I am sure your efforts will eventually pay off. It's just now may not be the time for us.
One thing I should of got more experience in was making the tea.

I am rubbish at that. Got to start somewhere!